HONG KONG, Aug. 14 /PRNewswire/ -- Xinhua Far East China Credit Ratings (Xinhua Far East), the pioneering undertaking to rank credit risk among Chinese corporations using international standards, today downgrades the BBB (pi) long-term credit rating of Bengang Steel Plates Co Ltd ("Bengang" or "the Company", SZ A 000761, SZ B 200761) to B (pi). The rating outlook is also changed to negative from stable.
The downgrade is triggered by the inability of the Company's external auditor PricewaterhouseCoopers Zhong Tian CPA to express opinions on Bengang's financial statements as of December 2002. It is mainly because the external auditor was unable to obtain the relevant audit evidence to assess the completeness and accuracy of the Company's related party transactions with its parent company and the fellow subsidiaries.
Bengang announced on July 26, 2003 that it has undertaken measures to improve its financial management and control in order to avoid recurrence of such irregularities. However, in Xinhua Far East's opinion, Bengang's irregularities violated the basic principles of corporate governance and accounting, making it very challenging for the Company to fully rectify this fragile internal control and financial management system. More importantly, Xinhua Far East is concerned that these irregularities have already severely impaired investor confidence in the Company making it difficult for Bengang to seek external and contingency funding, and thus significantly weakening its resistance against risks and contingencies.
While Bengang's financial statements indicate a sound operating and financial profile of the Company, investors are still subject to significant potential and contingent risks. Xinhua Far East believes the Company's overall risk surpasses the risk level of investment grade companies, thus prompting this downgrade to below investment grade.
Bengang is one of China's largest producers of hot-rolled steel plate. The Company's products include hot-rolled steel plate and continuous casting billet. Of which, turnover from hot-rolled steel plate accounted for 80.06% of the Company's total turnover in 2002.
The Company is a large cap stock ranking the 199th and the 13th in the Xinhua/FTSE China A 200 and B 35 Indices respectively. As of August 12, 2003, its total market cap (A plus B share) reached RMB 5.24 billion yuan (USD 647 million). The investible A-share market cap accounted for RMB 777 million yuan (USD 95.95 million) and RMB 1.35 billion yuan (USD 167 million) for the B share.
Note to Editors: About Xinhua/FTSE China A 200 and B 35 Indices
Xinhua/FTSE China A 200 Index is the large cap index in the Xinhua/FTSE China A Share Index Series and includes the top 200 companies in China by market cap. It is designed as a tradable index and is calculated in real-time every 15 seconds.
Xinhua/FTSE China B 35 Index is the large cap index in the Xinhua/FTSE China B Share Index Series and includes the top 35 companies in China by market cap. It is designed as a tradable index and is calculated in real-time every minute.
For daily data and further information, see www.xinhuaftse.com. About Xinhua Far East China Credit Ratings
Xinhua Far East China Credit Ratings (Xinhua Far East) is a pioneering venture in China that aims to rank credit risks among corporations in China. It is engineered by the strategic alliance between Xinhua Financial Network and Shanghai Far East Credit Rating Co., Ltd.
Capitalizing on the synergy between XFN and Shanghai Far East, Xinhua Far East's rating methodology and process blend unique local market knowledge with international rating standards. Xinhua Far East is committed to provide investors with independent, objective, timely and forward looking credit opinions on Chinese companies. It aims at helping investors differentiate the credit risks among the corporations in China, thereby, cultivating their awareness and promoting information disclosures and transparency in China market. For more information, see http://www.xfn.com/creditrating.
About Xinhua Financial Network
Xinhua Financial Network (XFN) is an independent financial service and media company based in Hong Kong providing financial information and unique access to Chinese and Asian markets. XFN provides real-time coverage of the Chinese and Asian equity markets and the corporate and economic news that moves them, delivering an integrated platform of indices, financial news feeds, credit ratings and investor relations services to global financial institutions and re-distributors via leased line, Internet and satellite technology. Early this year, the company acquired AFX-Asia Pte Ltd. and became immediately one of the leading financial news services in Asia, providing information from twelve bureaus throughout Asia and Australasia, for the professional investment community and the investing public.
Founded in 2000, XFN is backed by a select group of partner investors and is managed by a team of international business professionals recognized for their industry knowledge and proven leadership. The company is owned by a group of international shareholders including PR Newswire, informa, Xinhua News Agency, Nippon Venture Capital, REFCO and Funai Venture Capital. XFN is a Hong Kong corporation, with offices in Beijing, Shanghai, Shenzhen, Korea, Taiwan, Japan, Singapore and North America. For more information, see http://www.xfn.com/.
About Shanghai Far East Credit Rating Co., Ltd
Shanghai Far East Credit Rating Co., Ltd. is the first and leading professional credit rating company with comprehensive business coverage in China. It is an independent agency established by the Shanghai Academy of Social Sciences with the mission to develop internationally accepted standards of capital market in China. The company is a pioneer to conduct bond-rating business in China. For years, it has been recognized by the Shanghai branch of the PBOC to do loan certificate credit rating.
Since establishment, it had rated over 1,000 corporate long-term bonds and commercial papers, based on the principles of objectivity, fairness and independence. The company has also maintained over 50% market share in the loan certificate-rating sector in Shanghai for three consecutive years. With its strong local presence and knowledge, it provides investors the most insightful and unique credit opinion. For more information, see http://www.fareast-cr.com/.
CONTACT: Ms Joy Tsang, Corporate & Investor Communications Manager of Xinhua Financial Network, +852-3102-3983, or +852-9486-4364, joy.tsang@xfn.com
Web site: http://www.xinhuaftse.com/ http://www.xfn.com/creditrating http://www.xfn.com/ http://www.fareast-cr.com/
Комментариев нет:
Отправить комментарий